Professional Documents
Culture Documents
NBP Report
NBP Report
NBP Report
ON
Rukhsar Soomro
D/O Altaf Soomro
Roll No. 28 BBA (Hons)
Next, I introduced the branch I was working in, I explained the workforce distribution in the bank, Next I stated my
duration of internship in the bank and the departments that I served. Afterwards, I went through the training
phase in which I was taught about the fundamental processes involved in the working of the bank such as account
opening, dispatching etc.
Next, I explained how banks are managed and planned in order to keep the flow of bank normal. I also discussed
the organization procedures that are followed by employees such as managers, IT experts and then I explained the
role of leaders and their role in controlling the bank.
After that, I have performed the critical analysis of the bank in which I stated how poor the filing system and jobs
management system was. I also stated how the employee-customer relation can be improved and the technology
in use can be improved. Moreover, the low profit and its affects are also discussed. Moreover, the issues regarding
customer-privacy
Finally I stated the aspects of the bank where it shines, the places where it is in the shadows, the potential
opportunities that can enhance the bank’s working and finally the threats that endanger the bank. And then I
concluded the report with my comments.
4. T ABLE OF C ONTENTS
A. I NTRODUCTION
The National Bank of Pakistan (NBP) is among the largest commercial banks operating in
Pakistan. It redefined its role and by moving from a public sector organization into a modern
commercial bank. NBP was established in 1949 and since then, its network has expanded making
it the largest commercial Bank of the country. NBP head quarteris in Karachi, Pakistan with over
1,250 branches country wide. The bank provides both commercial and public sector banking
services.i
The Bank's services are available to individuals, the corporate entities and Government. While
NBP continues to act as trustee of the public funds and as anagent to the State Bank of Pakistan
(in places where SBP does not have a presence) it has diversified its business portfolio and is
today a major lead player in the debt equity market, corporate investment banking, retail and
consumer banking, agricultural financing, treasury services and is showing growing interest in
promoting and developing the country's small and medium enterprises and at the same time
fulfilling its social responsibilities, as a corporate citizen.
Today, NBP is a progressive, efficient, and customer focused institution. The bank has developed
a wide range of consumer products in order to enhance its business capabilities and cater to the
different segments of the modern society. Some schemes have been specifically designed for the
low to middle income sectors of the population. For NBP’s clear introduction I will explain its
History and also its Mission, Vision, Values and Goals.ii
B. V ISION
For NBP to recognized as a leader and a brand synonymous with trust with highest standards of
service quality, international best practices and social responsibility.
C. M ISSION
NBP aspires to meet up to the values that make NBP truly the Nation’s Bank, by setting the
following goals:
D. C ORE V ALUES
Highest standard of integrity.
Institutionalization of team work & performance culture.
Excellence in service.
Advancement of skills for tomorrow’s challenges.
Awareness of social & community responsibilities.
Value creation for all stakeholders.
E. G OAL
To enhance the profitability and maximization of NBP’s share through the increasing leverage of
existing customer base and diversified range of products.
F. T HE P RODUCT O UTLINES
National Bank of Pakistan has launched many programs to suit the needs of people of different
sectors. These programs include.
G. L IST OF C OMPETITORS
Following Banks can be termed as the competitors of the National Bank of Pakistan.
Bank Alfalah
Muslim Commercial Bank
Habib Bank
Meezan Bank
Allied Bank
United Bank
First Women Bank
Bank of Punjab etc
6. O RGANIZATIONAL S TRUCTURE
A. O RGANIZATIONAL H IERARCHY C HART
The Organizational Chart and Sub-charts are very descriptive. The defined hierarchy suits the needs of the Bank
and is able to manage the affairs smoothly. Unlike other Banks, the hierarchy is less complex and is easy to follow
and understand, the organization has a flexible structure.
7. I NTERNSHIP A CTIVITY P LAN
Name Designation
Mr. Raza Ullah Khan Manager
Mr. Shoaib Operation Manager
Mr. Mushtaq Khan Officer
Mr. Naimat Ullah Officer
Mr. Haji Umar Gul Govt. Section Officer
Mr. Farouq Khan Officer
Mr. Hameed Ullah Head Cashier
Mr. Yousaf Khan Cashier
Mr. Manzoor Cashier
Mr. Gul Muhammad Chowkidar
Establishment
Account Opening
Remittance and Bill Section
Clearing Section
Dispatching
Foreign Exchange and Advance Loans
Government Department (Pension)
8. T RAINING P ROGRAM
While I was doing my internship at NBP I noticed that the theoretical concepts that I have studied at VU
were implemented in almost the whole Branch. The theory and the examples that I studied in financial
accounting about Bank Reconciliation, ledgers, balance sheets were actively and strictly followed. The
defined hierarchy of the organization was strictly followed. POLCA function was at its best, the manager of
the Bank plans, controls and defines the work flow and ensures that the staff is doing its best. I noticed
that our Manager was following Theory X as he was keenly observing each and every staff activity and was
also angry sometimes. The activities mentioned above gave me experience and learning opportunities.
Manager was working as a true leader and was guiding the team very positively, sometimes as he was a
short tempered person and followed all the rules and regulations so I can say that he was a very strict
Manager.
I. ACCOUNT OPENING
Filling the forms and guiding the customers who were unable to fill their forms was my
task, I used to check all the requirements and document attachments, and send to Mr.
Mushtaq who would sign all the documents and then sign from all the concerned personnel
was taken and new account opening was initiated, normally new account opening takes 3
to 4 days. Here I observed Account opening process. I also learnt about the basic
requirements for opening up an account in NBP. Opening an account means that customer
establishes a relationship between the bank and himself.
Just like other Banks, NBP also makes sure that the Applicant applying for the account is a
intended customer or not. After verifying this, Applicant’s occupation, integrity and nature
of business are determined via references. The margin of error at this time is very less, a
little mistake can lead to greater problems.
To keep the process of account opening concrete and in-order, the Federal Overseer of
the Banks of Pakistan has obligated all the Banks to keep all the details and performas of
the process of account opening along with all the details of the person who introduced the
customer to the Bank. It is because of this Obligation Branch Managers need to get all the
records and Credentials of the Applicant and the Introducer.
During my work span in the Account Opening section I was directed by my seniors to keep
in mind a few points which are the main requirements for an applicant to open up an
account. They are as follows:
During my work-span, and experience at NBP, that when an applicant applies for to
open a new account, the officer at Bank provides the applicant with application form,
the necessary information to be known by the bank need to be filled by the customer.
This application form also requires all the documents and attachments needed from the
customer side.
i. Account Title
ii. Applicant’s Full Name
iii. Customer’s Occupation
iv. Customer’s Address
v. Customer’s Telephone Number
vi. Account’s Currency
vii. Business Nature
viii. Name, Address and Number of the Referencing customer
ix. Accounts= related special instructions
x. Amount to be deposited initially in the account
xi. Applicant’s Signature
The customers collect their money/amount through bills. They present their cheques,
drafts and other bills for collection within the city and out of the city through mail. Now
a days Online Banking is becoming more popular for this purpose but the branch where I
got training did not have this facility.
Here in Remmitence Department, I used to make Pay Orders, DD’s, fill transaction forms,
cash transfer forms, also made DDR’s, During making these transactions I also kept a
check on the Customer’s account as if it is closed or not. I also worked on the Cash
Counter to give away amounts on cheques after they were entered into our system.
Accepted utility bills from the customers.
There are two stamps put on each cheque, sent for clearing:
i. Crossing Stamp
ii. Manager Stamp.
CC controls the intra cities cheques. First these cheques are noted down in a daybook,
here different numbers are allotted to these cheques. After entering the cheques and
assigning numbers to it, a performa in which details on who draw the money, cheque
number, the amount, who is taking money are recorded. After this, the cheque is posted
along with its filled performa.
Here I used to enter data on the cheque into the computer system to check weather the
account with-holds this much amount, after the verification of the amount, the
transaction was made into the system and, as the bank still uses the old forms of record
keeping, a register is also maintained and I entered the amount, name of the person
withdrawing the money in case of open cheuque date and signature of the withdrawing
person if it is other than the account holder, and stamped the cheque to declare it to
take money from the counter and give the customer a token and write the token number
on the cheque so the money counter can call the specific customer, here I felt the need of
modern Banking system as they have automatic counters and computerized buzzer
systems which were not available in that Branch of NBP.
IV. DISPATCHING
DISPATCHING DEFINITION:
Dispatching is physical function, in which we handover the daily transactions to the
operating facility through the release of transactions and instruction with previously
developed plan of activities that are established by the scheduling section of
the department.iii
DISPATCHER:
Dispatcher is a person that will perform the dispatching. Dispatch function determines,
by whom the job shall be done. A dispatcher is familiar with, how to maintain official
documents, how to explore daily transactions.
In this type of dispatch system, the dispatch department sends transaction directly to
the other branches. It maintains full record of each transaction of each function. It has
following advantages.
Progress of orders can be readily assessed at any time because all the information is
available at a central place.
There is effective and better utilization of manpower and machinery.
MY ROLE AS DISPATCHER
My Role as dispatcher was:
i. As communication dispatcher.
ii. As computer aided dispatcher.
iii. Performs duty as shift supervisor/lead dispatcher.
iv. Doing duties of dispatcher for maintaining daily transaction.
V. ESTABLISHMENT:
Establishment is a procedure in which department may find any lackness in the
organization with respect to buildings, enhancement etc.
In Advanced Loans section I used to check for those customers who have not yet paid
loans and markup amount to the Bank. Every such customer was tracked and called for.
If the payment is made then everything is smooth, but if the customer doesn’t pay the
amount, the bank runs a case against them. I worked on providing loans to different
customers under different schemes; mainly the Rozgar Scheme was targeted. I used to
make the Loan Reports which contained all the customer data and the figure of their
loans to the head office on monthly basis.
NBP also carries the international banking through its Foreign ExchangeDepartment. All
the transactions are carried out at the rate which is authorized by the State Bank of
Pakistan (SBP). For this purpose US dollar has been fixed by SBP and the rate of other
currencies are calculated in accordance with the formula approved by SBP and as
published daily by Foreign Exchange Rate Committee in Karachi. NBP Head Office
ensures that the branches receive the rates published by Foreign exchange rate
Committee on the same day. The Foreign Exchange Department provides the following
services;
VII. G O V E R N M E N T D E P A R T M E N T (P E N S I O N )
I have spent a week of my internship in the government pension section. Here two
types of pensions are given to the pensioners.
The pension is paid to the pensioners on every date of the month. Every pensioner
have his own copy of pension in which all the details of the pension are listed
including the date of receipt, the amount of money and also any increase if
sanctioned by the govt.
I used to fill the Pensioner’s Pension book, check the previous Pension records to see
when was the last pension taken, as the Government of Pakistan is always making
changes in the Percentages of the Pensioner’s Pension, I used to calculate the variance
in their pension’s and updated pension book of the pension holder. Here I used to
make sure that the Pension holder himself is receiving the Pension to ensure
transparency. I used to sign their pension form with the tickets on it and approve for
cash receipt. First week of the month is always busy and the bank used to be full of
pensioners, there were no special arrangements for the Old people and ladies, people
used to come from far areas to receive their pensions and the Bank did not even have
enough benches to entertain them.
The recent increase in the pension of the retired govt. employees is listed below.
The family pension below 2300 is increased to 3000 + the medical allowance
on the ratio listed.
A. P LANNING
Planning determines the organizational goals and the means of achieving them.
The board of Directors also give due weightage to the proposals submitted to them by
the field functionaries by time to time while making policies for bank’s interest. We can
say that there is democratic atmosphere and environment for decision-making Process.
AT BRANCH LEVEL
The branch manager makes decision in association with branch operations manager and
other staff members.
B. O RGANIZING
I. ORGANIZATIONAL DESIGN
Organizational Design is the process of developing or changing an organization’s
structure. This involves the decisions of about six key elements, which are: Work
Specialization, Departmentalization, Chain of Command, Span of Control,
Centralization/Decentralization, and formalization.
DEPARTMENTALIZATION
Departmentalization at NBP is pretty elaborative and neat. The following chart can
extensively define the hierarchy of the departments currently working in NBP
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SPAN OF CONTROL
Span of controlis the number of subordinates who report directly to a specific manager
in the bank.
There are three types of branch categories i.e. I, II, & III.
FORMALIZATION
One of the newer concepts in the organizational design is the teambased structure
which is made up of work-groups or teams that performs the organization’s work. NBP
has high departmentalization and more formalization.
WORK SPECIALIZATION
Work specializationis the degree to which the work necessary to achieve organizational
goals is fragmented into various jobs. These jobs are performed parallel to each other
and their combined result is counted as the organizational goal. Another term for this is
division of labor. NBP is emphasizing on work specialization and job specification.
II. MANAGING CHANGE AND INNOVATION
The change management in an organization is a managerially difficult process. It is
because strategists normally consider a single variable instead of the holistic view of the
organization.
In today’s world perhaps the most frequent and common trigger for organizational
transformation is the technology and its continuous advancement. This transformation
occurs on account of revolutionizing the production process, informational and
communication technologies or other processes such as demand management and,
order fulfillment. It is the technological innovation perceptibly that leads to the
increased efficiency in value chain activities, especially in primary and support activities
of the value chain. NBP is focused towards managing change environment and its
innovations.
But NBP still lacks in IT field from different other Banks. NBP needs to come with new
trends of Online Banking and Accounting.
C. L EADING
I. LEADERSHIP STYLE
NBP is adopting democratic style of leadership in which employees’ involve in decision-
making process. The bank usesthe user feedback to coach employees for decision-
making process. Democratic leadership style could contribute to both the quantity as
well as high quality of work.
III. MOTIVATION
The leader plays a very important role of uplifting the employees in any hardship. The
job in the bank is very time consuming and requires motivation and support from the
leadership. The leader acts as a guide for the employees and his technical superiority is
very important for the employees.
D. C ONTROLLING
I. CONTROLLING OF OPERATIONS
The bank is committed and focused towards good quality customer service and in
2007 with the motto of ‘Putting as smile on our Customers face’, it made concerted
efforts and took a number of initiatives in order to improve the user experience and
bank’s operation capabilities. Workshops and seminars were conducted in order to
disseminate the very important message of “excellent customer service”. It is
transforming the bank’s branches to give a modern look and convenience to.A number
of branches have been shifted to prominent and spacious locations. It also has
established specialized customer facilitation centers to exclusively cater to pension
payments, utility and government collections. These are expected to reduce counter
traffic at our branches and will increase our distribution channels for better and
convenient services. Business hours have been extended with the establishment of
customer facilitation offices at the regional levels in order to help on the spot resolution
of customer complaints.
A. O RGANIZING
I. POOR FILING SYSTEM RECORD
During my internship in the bank, I observed that the filing system of the bank is not
modern and thus, it has a lot of potential for development and can be optimized and
upgraded by using databases and computerized system.
F. C ONTROLLING
I. MANAGER AUTHORITY
Manager has a limited authority he just approves the job so that when manager is
not present in his office. The customer having a wait for many hours and I observed
that there are delays in sanctioning loan cases form the head office which causes
dissatisfaction to the customer.
G. P LANNING
I. I N C O M P E T E N T HOD’ S
I noticed during my work-span that the HOD’s in the bank used to slack during the
peak hours, HOD’s should be more active during the bank peak hours and interact
more with the customers to boost their confidence in the Bank. Theory X should not
be followed but the Theory Y should be followed to ensure more friendliness in the
air and higher customer satisfaction.
A. S TRENGTH
Major Strength of National Bank is its Brand Image and its Brand Name. NBP is considered to be
the Pillar of Pakistan’s economy. NBP has the caliber to compete with Pakistan’s best Multi-
National Banks and has the ability to keep up with the newly emerging trends of modern banking
and computer systems. Over the years, NBP’s reserved funds have been increased. NBP is
expanding business worldwide which truly is an advantage over rest of the Banks in the Business.
NBP holds a vast group of customers globally and locally. A few more strengths of NBP are.
I. A CULTURAL ORGANIZATION
Being a trustee and an agent of State Bank of Pakistan, NBP takes pride in being a
cultural organization, helping customers and citizens of all walks all around the country
and is one of the few Banks which has presence in every city of Pakistan.
V. STRATEGIC MANAGEMENT
The top management of the Bank as stated earlier is highly strategic; they devise the
strategies after consulting with the researchers, and approve strategies which in turn
benefit the Bank in long run.
B. W EAKNESSES :
Downsizing has been the biggest weakness of NBP. Many devoted employees were asked to
leave because of the downsizing. Lot of confusion is found in the employees.
High level Managers are hired from famous institutes and organizations. As those employees
have a different background, it makes it difficult for them to make healthy decision which can be
in benefit of this bank. Downsizing caused many customers of NBP to leave. This downsizing
caused threats to the bank as the competitors took advantage. NBP is losing the Market share
and its customer’s streamline. Few major weaknesses of NBP are given below.
C. O PPORTUNITIES :
A very bright professional future lies ahead of NBP. NBP has devised a huge plan to earn back its
lost position and the customer streamline from just like they had in the past and to increase their
profitability and regain the trust of the customers just like they used to have in the past.
Furthermore, NBP is the only bank which gives general public the ease of submitting their utility
bills all day long. The goodwill of the NBP is something that no competitor can achieve the way
NBP has done it.
D. T HREATS :
Small Banks are not a threat to NBP’s reputation as the Customer Pool of NBP is full of huge
investors so these small banks cannot threat the integrity of NBP. But the major rivals of the Bank
include HBL and Bank Alfalah which can be a threat to NBP as they are emerging very fast. Some
of the other treats that NBP is facing are:
12. C ONCLUSION
During my entire training program, beginning from the internship till writing this report, I have realized
that the National Bank of Pakistan is a deliberate structured organization and it is serving its customers
all over Pakistan through its wide spread network of branches. It is offering many services and products
at easy markup rates to the valued customers. The customers are valued and are served at the first
priority. The employees of the Bank are very much cooperative and work whole heartedly thus working
hard for the success of the Bank.
Selections are made on the basis of merit but references and approaches are very much popular in
National Bank of Pakistan. The Bank serves the people well and it has initiated special moral initiatives
while distributing pensions among people, especially the old age people who come from far areas to get
their pensions. They are dealt very kindly and the Bank atmosphere is very customer friendly.
13. R ECOMMENDATIONS
The following are the some positive suggestion & recommendation for the NBP.
In my opinion the transaction process should be short so that the time is saved for both the
customers and the bank.
Staff strength should be optimized and professional qualified persons should behired on the
basis of merit.
Personal Marketing & Professional attitude.
Remove the Nepotism & Create Delegation of Authority.
It is recommended that proper training should be provided to the staff members which will
ultimately increase the performance of Bank over all.
To sustain the job satisfaction, NBP needs to offer promotions and incentives from time to
time.
Environment and Atmosphere should be more renovated and decorated at the Branch
offices.
The bank should spend more on renovation of the branches to improve environment and
atmosphere to attract the customers.
NBP needs to implement computer software to handle the load of work.
There is lack of counters in the bank; more counters shall be introduced to facilitate the
customers.
NBP needs to launch mobile banking
Only two guards were present at the branch, the security level was not so good at the
branch; security needs to be looked after.
For old aged customers and pensioners the Bank needs to introduce a new counter as well
which is dedicated to them all day long.
I saw no inspection team come in for inspection during my work span, inspection teams
should work more efficiently.
At our branch there was no separate counter for Utility bills, there should be a separate
counter for all sorts of utility bills.
They need to enhance the process of allotting loans to be in a quicker manner.
Provide real information to the Shareholders.
NBP is now needed to invest in those industries which are profitable for it e.g. Pakistan Film
Industry, Once again Establish the Textile Industry, Armed Force Weapon Industry & also
provide the Micro finance for the Home Industry.
All of the above eventually provide satisfaction to the customer.
14. R EFERENCES
i
From Wikipedia http://en.wikipedia.org/wiki/National_Bank_of_Pakistan
ii
The official website of National Bank of Pakistan http://www.nbp.com.pk/index.htm
iii
References taken from the following website http://www.mbaknol.com/operations-management/dispatch-function-
in-production-management/